NASA recognizes that your family needs, personal desires, or professional goals may not include your continuing employment within the Federal civil service. If you separate from civil service prior to retirement, you are entitled to a number of benefits that should help your transition. This section summarizes those benefits.

Section L of Your NASA Employee Benefits Statement provides specific information on your individual eligibility for these benefits.

Payment for Accrued Annual Leave

If you are separating from Federal civil service, you will be paid for your accrued annual leave. The amount is paid in a lump sum usually within 4 to 6 weeks (2 pay periods) after you separate. If you are transferring to another agency, you will retain your leave balance.

Payment for Last Pay Period Worked

On the normally scheduled pay day, you will receive a paycheck for the final hours you worked.

Carryover of Accrued Sick Leave

A record of your accrued sick leave balance will be posted in your Official Personnel File. This sick leave balance will be restored to you -- if you are re-employed with the Federal Government. You will not receive credit for unused sick leave if you eventually apply for and receive a deferred annuity. If you transfer to another agency, your sick leave balance will transfer with you.

Federal Employees' Group Life Insurance (FEGLI) -- Temporary Extension

You will have a 31-day extension period for conversion to an individual policy up to the total amount of your Federal Employees' Group Life Insurance (FEGLI). The Government will not pay any part of the premium cost of your individual policy. If you transfer to another Federal agency your FEGLI coverage will transfer with you.

NASA Employee Benefits Association (NEBA)

You may convert up to the full amount of your NASA Employee Benefits Association (NEBA) basic insurance within 31 days from the date of employment termination to an individual policy without medical evidence of insurability by making application and paying the appropriate premium. The premium will be based upon your age and your class of risk. Any type of insurance currently offered by the insurance company may be selected except term insurance, but it may not include supplementary benefits such as double indemnity for accidental death.

Under the Optional plan, the same conditions apply, except that (1.) you may convert to a permanent policy or continue the yearly renewable term insurance policy and (2.) the minimum amount you may convert is $10,000 of permanent and $25,000 of term.

Federal Employees Health Benefit Plan (FEHB) -- Continuation of Coverage

You have a 31-day temporary extension of coverage for conversion to an individual health insurance policy. In addition, you may also continue your coverage for up to 18 months after separation. You pay both the employee and Government shares plus a two percent administrative charge. If you transfer to another Federal agency, your FEHB coverage transfers with you – although you may have to change plans if your existing plan is not available at your new location.

Your Personnel Records

If you are separating from Federal civil service your personnel records will be retained by the Federal Personnel Records Center, St. Louis Mo. If you are transferring as a civilian to another Federal agency, your file will be forwarded to that agency. All non-permanent entries will be purged. If you return to Federal service, your new agency will retrieve your file from the records center.

Your Thrift Savings Plan (TSP)

Once you separate from Federal service, you may not continue to contribute to TSP. You may however, leave your funds in your account and continue to accrue earnings. After you’ve been separated for 31 or more days you may normally withdraw your funds from your account.

There are three basic ways to handle your TSP account:

• Have the TSP purchase a life annuity for you
• Receive your account in a single payment or a series of monthly payments
• Rollover into an IRA

You can have your payment(s) begin immediately or at a later date. You must choose a future date that is no later than April 1 following the year you become 70½. In addition, you can have the TSP transfer all or part of a single payment or a series of monthly payments to an IRA.

The amounts contributed to the TSP and the earnings of those contributions are tax deferred while you are a participant in the TSP. When a payment is made directly to you from your account after you separate from Federal service, this money is taxable as income in the year in which payment is made. Your direct payments are subject to mandatory 20 percent Federal income tax withholding .

There is no Federal income tax withholding on payments that you have TSP transfer directly to an IRA.

If you leave Federal service before the year you turn 55 and you withdraw your account in a single payment or a series of equal monthly payments, you will be subject to a 10 percent early withdrawal penalty tax on all direct payments you receive before age 59½.

Your CSRS/FERS Retirement Contributions

If you receive a refund of all of your retirement contributions, you will void any rights to future retirement, such as deferred retirement (beginning at age 62). If you are re-employed you may make a redeposit for any CSRS service you had.

Deferred Annuity

If you do not receive a refund of your retirement contributions and meet the requirements for deferred retirement, you will be eligible to apply for a deferred retirement based upon the following:

• Your deferred retirement annuity is based on the laws in effect when you separate. You may elect a survivorship for your spouse.
• Your "high-3" average salary will be based on your salaries in effect during your last 3 years of Federal service.
• Sick leave will not be creditable.
• You will not be eligible to receive any intervening cost-of-living increases, but you will be eligible for all increases after your deferred retirement begins.
• You will not be eligible to carry your health or life insurance into retirement.
• If you die before your deferred retirement begins, your spouse may apply for a lump-sum payment of your retirement contributions. If you had at least 10 years of FERS service, your surviving spouse may choose to have an annuity payable when you would have been eligible for an unreduced annuity or choose a reduced surviving spouse annuity to begin immediately. No surviving spouse annuity will be payable if you had CSRS service.